#THE AGRICULTURAL PRODUCE (GRADING AND MARKING) ACT, 1937 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 

1. Short title and extent. 
2. Explanations. 
3. Prescription of grade designations. 
3A. Powers of entry, inspection and search. 
3B. Powers of the authorised officer to seize agricultural produce. 
4. Penalty for unauthorised marking with grade designation mark. 
5. Penalty for counterfeiting grade designation mark. 
5A. Penalty for selling migraded articles. 
5B. Power to prescribe compulsory grade designations in respect of certain articles. 
5C. Institution of prosecution. 
6. Extension of application of Act. 



#THE AGRICULTURAL PRODUCE (GRADING AND MARKING) ACT, 1937 

##ACT NO. 1 OF 1937

[24th February, 1937.] 

An Act to provide for the grading and marking of agricultural and other produce. 

  WHEREAS it is expedient to provide for the grading and marking of agricultural and other produce; 
It is hereby enacted as follows: 

1. **Short title and extent.**—(1)  This  Act  may  be  called  the  Agricultural  Produce  (Grading  and 
Marking) Act, 1937. 

(2) It extends to the whole of India.

2. **Explanations.**—In this Act, unless the contrary appears from the subject or context,— 

  (a) “agricultural  produce”  includes  all  produce  of  agriculture  or  horticulture  and  all  articles  of 
food  or  drink  wholly  or  partly  manufactured  from  any  such  produce,  and  fleeces  and  the  skins  of 
animals; 

  (b) “counterfeit”  has  the  meaning assigned to that word by section 28 of the Indian Penal 
Code (45 of 1860); 

  (c) “covering” includes any vessel, box, crate, wrapper, tray or other container; 

  (d) “grade  designation”  means  a  designation  prescribed  as  indicative  of  the  quality  of  any 
scheduled article; 

  (e) “grade  designation  mark”  means  a  mark  prescribed  as  representing  a  particular  grade 
designation; 

  (f) “quality”, in relation to any article, includes the state and condition of the article; 

  (g) “prescribed” means prescribed by rules made under this Act; 

  (h) “scheduled article” means an article included in the Schedule;

  (i) an article is said to be marked with a grade designation mark, if the article itself is marked with 
a grade designation mark or any covering containing or label attached to such article is so marked; 

  (j) an article is said to be migraded if,— 

     (i) the  article  is  not  of  the  quality  prescribed  for  the  grade  designation  with  which  it  is 
marked; 

     (ii) the composition of the article offered for grading is altered in any way after a sample has 
been drawn for analysis and determination of the grade designation of the article in accordance 
with the rules made under this Act; 

     (iii) the article is tampered with in any manner; and 

     (iv) any false claim is made for the quality prescribed for its grade designation, upon the label 
or through advertisement or in any other manner.

3. **Prescription of grade designations.**— (1) The  Central  Government  may,  after  previous 
publication by notification in the Official Gazette, make rules to carry out the provisions of this Act. 

(2) In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 
provide for all or any of the following matters, namely:—

  (a) fixing grade designations to indicate the quality of any scheduled article; 

  (b) defining the quality indicated by every grade designation; 

  (c) specifying grade designation marks to represent particular grade designations; 

  (d) authorising a person or a body of persons, subject to any prescribed conditions, to mark with a 
grade designation mark any article in respect of which such mark has been prescribed or any covering 
containing or label attached to any such article; 

  (e) specifying  the  conditions  referred  to  in  clause  (d)   including  in  respect  of  any  article 
conditions as to the manner of marking, the manner in which the article shall be packed, the type of 
covering to be used, and the quantity by weight, number or otherwise to be included in each covering; 

  (f) providing for the payment of any expenses incurred in connection with the manufacture or use 
of any implement necessary for the reproduction of a grade designation mark or with the manufacture 
or  use  of  any  covering  or  label  marked  with  a  grade  designation  mark or with measures for the 
control  of  the  quality  of  articles  marked  with  grade  designation  marks  including  testing  of samples 
and inspection of such articles or with any publicity work carried out to promote the sale of any class 
of such articles;

  (g) providing for the confiscation and disposal of produce marked otherwise than in accordance 
with the prescribed conditions with a grade designation mark; 

  (h) any other matter which is required to be, or may be, prescribed.

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be 
after it is made, before each House of Parliament, while it is in session, for a total period of thirty days 
which may be comprised in one session or in two or more successive sessions, and if, before the expiry of 
the session immediately following the session or the successive sessions aforesaid, both Houses agree in 
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule.

3A. **Powers of entry, inspection and search.**—(1)  Any  officer  of  the  Central  Government  or  a 
State Government or any authority, being an officer of a gazette drank or of equivalent rank, authorised 
by  the  Central  government  may,  if  he  has  reason  to  believe  that  any  provision  of  this  Act  or  the  rules 
made thereunder has been, or is being, contravened, enter any premises at any reasonable time and make 
necessary inspection of, and search for, the agricultural produce in relation to which such contravention 
has been, or is being, made. 

(2) Every  authorisation  made  under  sub-section  (1)  shall  be  deemed  to  be  a  warrant  referred  to 
in section 93 of the Code of Criminal Procedure, 1973 (2 of 1974). 

3B. **Powers of the authorised officer to seize agricultural produce.**—(1) An  officer  authorised 
under sub-section (1) of Section 3A may seize and detain any agricultural produce in relation to which an 
offence  under  this  Act  or  the  rules  made  thereunder  is  being,  or  appears  to  have  been,  committed,  or 
which is intended or likely to be used in the commission of such offence: 

  Provided  that  where  any  agricultural  produce  seized  under  this  sub-section  is  subject  to  speedy  or 
natural  decay,  the  officer  so  authorised  may  dispose  of  such  produce  in  such  manner  as  may  be 
prescribed. 

(2) The provisions of section 102 of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply to 
every seizure made under this section.

4. **Penalty  for  unauthorised  marking  with  grade  designation  mark.**—Whoever marks 
any scheduled article with a grade designation mark, not being authorised to do so by rule made under 
section  3,  shall  be  punishable with  imprisonment  for  a  term  not  exceeding  six  months  and  fine  not 
exceeding five thousand rupees. 

5. **Penalty for counterfeiting grade designation mark.**—Whoever  counterfeits  any  grade 
designation  mark  or  has  in  his  possession  any  die,  plate  or  other  instrument  for  the  purpose  of 
counterfeiting a grade designation mark shall be punishable with imprisonment for a term not exceeding 
exceeding three years and fine not exceeding five thousand rupees. 

5A. **Penalty for selling migraded articles.**—Whoever  sells  any  scheduled  article  which  is 
migraded  shall  be  punishable  with  imprisonment  for  a  term  not  exceeding  six  months  and  fine  not 
exceeding five thousand rupees. 

5B. **Power to prescribe compulsory grade designations in respect of certain articles.**—(1) Where 
the  Central  Government  is  of  opinion  that  it  is  necessary  in  the  public  interest  or  for  the  protection  of 
consumers that any scheduled article or class of articles shall not be sold or distributed except after such 
article or class of articles is marked with the grade designation mark, it may, by notification in the Official 
Gazette, make a declaration to that effect. 

(2) Any notification issued under sub-section (1) shall specify the area or areas in relation to which 
the notification shall have effect. 

(3) Where a notification under sub-section (1) is issued in respect of any area or areas, no person shall 
sell or offer to sell or distribute or offer to distribute any scheduled article or class thereof in the area or 
areas except in accordance with the provisions of this Act or the rules made thereunder. 

(4) Whoever contravenes the provisions of this section shall be punishable  with imprisonment for a 
term not exceeding six months and fine not exceeding five thousand rupees. 

5C. **Institution of prosecution.**—No court shall take cognizance of an offence punishable under this 
Act except upon a complaint in writing made by— 

  (a) the Central Government or the State Government or any officer authorised by it in writing; or 

  (b) the person aggrieved; or 

  (c) a  recognised  consumer  association,  whether  the  person  aggrieved  is  a  member  of  that 
association or not. 

*Explanation.*—For the purposes of this section, “recognised consumer association” means a voluntary 
consumer association registered under the Companies Act, 1956 (1 of 1956) or any other law for the time 
being in force.

6. **Extension of application of Act.**—The Central Government, after such consultation as it thinks fit 
of the interests likely to be affected, may by notification in the Official Gazette declare that the provisions 
of this Act shall apply to an article of agricultural produce not included in the Schedule or to an article 
other than an article of agricultural produce and on the publication of such notification such article shall 
be deemed to be included in the Schedule.

 
                                                           
##THE SCHEDULE 

*(See* section 2) 

1. Fruit. 

2. Vegetables. 

3. Eggs. 

4. Dairy produce. 

5. Tobacco. 

6. Coffee. 

7. Hides and Skins. 

8. Fruit products. 

9. Atta. 

10. Oilseeds. 

11. Vegetable oils (including hydrogenated oils and vegetable fats). 

12. Cotton. 

13. Rice. 

14. Lac. 

15. Wheat 

16. Sann Hemp. 

17. Sugarcane gur (Jaggery). 

18. Myrobalans. 

19. Bura. 

20. Wool and Goat Hair. 

21. Bristles. 

22. Rosin and Turpentine. 

23. Arecanuts. 

24. Essential Oil. 

25. Cashewnut. 

26. Cardamom. 

27. Pepper. 

28. Ginger. 

29. Honey. 

30. Curry Powder. 

31. Kapok. 

32. Raw Jute. 

33. Paddy. 

34. Millets. 

35. Mesta. 

36. Chilies. 

37. Turmeric. 

38. Tapioca Chips and Tapioca Flour 

39. Sisal and Aloe Fibres. 

40. Oil cakes. 

41. Condiments and Spices. 
  (Other than pepper, ginger, cashewnut, cardamom, chillies and turmeric, to which the provisions 
  of the Act have already been applied.) 

42. Pulses. 

43. Walnut. 

44. Animal casings (cattle, buffaloes, sheep, goats and pigs). 

45. Guar Gum. 

46. Karaya Gum. 

47. Senna Leaves and Pods. 

48. Palmyra fibre. 

49. Catechu. 

50. Tendu Leaves. 

51. Water Chest-nut. 

52. Mushrooms. 

53. Poppy seed. 

54. Cashew-shell Oil (Liquid). 

55. Beeswax. 

56. Gram (Cicer arietinum). 

57. Jowar (Sorghum vulgare). 

58. Maize (Zea mays). 

59. Barley (Hordeum vulgare). 

60. Ragi (Eleusio coracana). 

61. Bajra (Pennisetum typhoides). 

62. Sheekakai powder. 

63. Compounded asafoetida.